Calculate the contribution margin, break-even point and margin of safety.

In the month of Match, Marias Beauty Salon gave 2800 haircuts, shampoos and colour treatments at an average price of $40. During the month, fixed costs were $21000 and variable costs were 70% of sales

Required:

a. Determine the contribution margin in dollars, per unit and as a ratio.

b. Using the contribution margin technique calculate the break-even point in dollars and in units.

c. Calculate the margin of safety in dollars and